Litecoin is one of four cryptocurrencies now available for futures trading (as of 10/18) for non-US citizens through Litecoin Perpetual Futures, a financial derivative offered on Coinbase Advanced.
These futures allow clients to employ leverage up to 5x.
Let's say you have $1,000 in your trading account, and you decide to use 5x leverage to trade Litecoin Perpetual Futures. This means you can control a position size of up to $5,000 (5 times your initial capital).
If the price of Litecoin moves against your position and your account balance falls below the maintenance margin level set by the exchange (let's assume it's 20% in this example), you may receive a margin call. The exchange will typically request additional funds to bring your account balance back above the maintenance margin level. Failure to do so may lead to the liquidation of your position to cover potential losses.
For more information directly from Coinbase, you can visit this link: Coinbase Perpetual Futures Liquidation Management.
All perpetual futures on Coinbase Advanced for non-US citizens will settle in USDC, a globally trusted stablecoin based in the US, provided by Circle. The minimum order size is 10 USDC, a notably low amount.
According to Coinbase, the global crypto derivatives market represents 75% of the worldwide crypto trading volume.
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